Authors: Paul F. Takac, C.P. Singh
Addresses: McKinsey and Company, 1 Collins Street, Melbourne, Victoria, Australia. ' ANZ Banking Group, 35 Collins Street, Melbourne, Victoria, Australia
Abstract: As markets have become increasingly more competitive and global in nature, organisations have begun thinking in terms of analogies from military strategy and warfare. Managers are seen to need to operate in a competitive and hostile environment, but also need the ability to co-operate with other organisations, some of which may be competitors. The concept of strategic alliances has therefore emerged as important in this context. This paper provides a critical analysis of the alliance formulation process so as to assist organisations in defining the nature and type of relationship that best satisfies their individual needs. Strategic alliances are a means of rationalising business operations and improving the overall competitive position of a company. The formulation of strategic alliances is important because of the sheer speed and dynamism of technological change which has opened up a wide range of new fields of activity. In the area of banking technology, the introduction of strategic alliances is increasingly viewed as an attractive option to the current diverse forms of business relationships in a multi-vendor environment. Firms have, however, experienced difficulty in defining the type of relationship that best suits their specific needs. To a significant extent this is due to the fact that a great deal of confusion exists regarding the term |strategic alliances|. In particular, parties have difficulty in distinguishing strategic alliances from other forms of organisational relationships. This paper defines the concept of strategic alliances and critically analyses the benefits and disadvantages of entering into such relationships. It also provides an outline of the strategic alliance formulation and management process.
Keywords: banking industry; banking technology; financial institutions; strategic alliances; management.
International Journal of Computer Applications in Technology, 1993 Vol.6 No.2/3, pp.99 - 111
Published online: 10 Jun 2014 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article